Forex | FX Operator | Currency Trading

The SRDC Episode I (BASIC) method is really simple and should really work well.

However I've also come accross a similar variation to this strategy that I would like to share.

Time Frame: Daily Chart

Currency Pairs: EUR/USD, USD/CHF, AUD/USD, GBP/USD, USD/JPY, USD/CAD, EUR/JPY & GBP/JPY

Setup:

1) As the daily Candle closes, check to see if it has formed an inner bar
(Inner bar is formed when the previous candlestick on the left has a higher high and a lower low)

2) We use 21 SMA as a filter. When it is slanting up, only enter pending buy trades and when slanting Down, only enter pending sell trades. When 21 SMA is flat, no trade.

3) For pending buy trades, Entry is 5 pips above the high of the inner bar and for pending sell trades, entry is 5 pips below the low of the inner bar

4) Stop Losses & Take Profits

a)Stop Loss is 50 pips for EUR/USD, USD/CHF, AUD/USD & USD/JPY. Take Profit for these pairs is double at 100 pips

b)Stop Loss is 60 pips for GBP/USD & USD/CAD. Take Profit is also double at 120 pips.

c)Stop Loss is 90 pips for EUR/JPY and Take profit is double at 180 pips.

d)Stop Loss is 100 pips forGBP/JPY amd Take profit is double at 200pips.

I beleive this variation if combined with SRDC Episode I (BASIC) will produce even better results